In a move impacting the local economy and workforce, DeRoyal Industries, a healthcare manufacturer, has decided to shutter its LaFollette facility that employs 153 individuals by the end of this year. According to a statement obtained by WVLT, the organization filed a WARN Notice with the Tennessee Department of Labor and Workforce Development on Tuesday. The facility, operational since 2004, has been a local mainstay for manufacturing custom procedure trays.
The closure is set to begin phasing out significant operations by September 30, as mentioned in a release from the company. In an unfortunate turn for the employees working at the plant, all remaining operations, including manufacturing and sterilization processes, are slated to cease by December 31, 2025. According to WATE's report, "DeRoyal has proudly provided both U.S. and international healthcare markets with CPTs for over 40 years. In today's compromised and narrowed medical device supply chain market, manufacturing of custom procedure trays is unsustainable and no longer viable for our company," CEO Brian DeBusk said, committing to support employees and customers through this transition.
The layoffs will commence on December 31, as the company looks to move away from custom procedure trays production. As outlined in the WARN notice, the changes at the LaFollette plant will not only affect local manufacturing but also mark a global discontinuation of the company's custom procedure trays offerings. DeRoyal's reported commitment is to assist the workforce affected by the decision, offering support services in coordination with the East Local Workforce Development Area rapid response team, as documented by WBIR.
While the closure spells the end of an era for the LaFollette facility, DeRoyal Industries maintains a global presence with 1,900 employees across 20 facilities in five countries. Beyond custom procedure trays, DeRoyal manufactures various healthcare products such as surgical, wound care, orthopedic, and patient care items. The impact of the closure will be monitored closely, as the East Local Workforce Development Board facilitates ongoing support for the workers soon to be displaced, as per WATE.
